Insurance premium is paid for the year ending 30th September,2020 amounted to ₹1,500.Calculate prepaid insurance assuming that the year ending is 31st March,2020
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Q: the insurance premium is paid for the year ending 1st September 2019 to Rs. 1500. Calculate prepaid insurance assuming that the year ending is 31st march 2019
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sol: insurance premium for entire year = Rs.1500
to calculate premium for the period 1st September 2018 to 31st march 2019 i.e. 7months
therefore , insurance premium = 1500* 7/12 = Rs. 875
Insurance premium for the year ending is 31st March 2019 is Rs. 875
hope this example helps you
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